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The Nifty tanked 2.14 per cent on Monday breaching its 50-day moving average of 11,714 to close at 11,588. The other key level, according to Rusmik Oza, head of research at Kotak Securities, to watch for the Nifty is 11,105 which is 200-DMA.

In last five years there have been three occasions when the Nifty has broken its 50-DMA an invariably has gone to test the 200-DMA. In fact, on these three occasions it has even broken the 200-DMA temporarily but came back above that level gradually, said Rusmik Oza, of Kotak. This happens strongly when the gap between the 50-DMA and 200-DMA is quite wide as it is this time. Post breaking of the 50-DMA, placed at 11,714, there is very high probability that the Nifty it will go to test the 200-DMA placed at 11,105, he added.